Altcoin scope on Binance has become more visible, as most tokens are now trading below the widely-watched trend level, a sign of weakness that independent CryptoQuant contributor Darkfost sees as a liquidity problem as much as a price problem.
In a post on X, Darkfost (@Darkfost_Coc) shared a CryptoQuant chart that tracks the share of Binance-listed altcoins trading below their 50-week moving average next to the Bitcoin price. His headline claim: “LIQUIDITY CRUNCH PUSHES 83% OF ALCOINS TO BEAR TREND,” arguing that many investors exposed to non-Bitcoin, non-stablecoin assets “are now in dire straits,” especially those who still hold positions.
Altcoin Range Breaks On Binance
Darkfost’s chart, titled “Performance of Altcoins (Binance)”, shows the percentage of altcoins below the 50-week moving average rising back to the historically depressed area. In his latest reading, 83% of Binance’s altcoins are below that threshold, a sign that the weakness is not isolated to a few names but is spreading across the tape.
He also pointed to an even more extreme episode earlier this month. “Since the end of the bear market in 2023, a new record was set on February 7, more than 92% of altcoins on the Binance exchange under this important technical support,” he wrote, describing it as a cycle of post-2023-high in downside participation.
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That is very different from the conditions seen during the previous phases. Darkfost noted that in March 2024 only 6% of Binance altcoins traded below the 50-week line, and in December 2024 the figure was 7%. Outside of those multi-month windows, he added, at least half of altcoins remain below the threshold, a behavior he doesn’t see as meaningfully different from the range volatility of the previous cycle.
Darkfost framed the altcoin as inseparable from the Bitcoin trend and the larger base, suggesting that the market’s risk budget is tight while the altcoin supply is stretched.
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“The market continues to be driven by the movement of BTC, which has been in a downward trend since October 2025 following the ATH at $126,000. Currently, the momentum of BTC remains very uncertain, the price is still rising at about 46% of its all-time high. The minutes of the FOMC, make the current environment especially challenging for volatile assets such as altcoins,” he wrote.
The chart itself marks BTC close to the mid-range of $60,000, emphasizing his broader point: in a realm where Bitcoin’s index is unclear and large inputs are hostile to duration and volatility, the range in high-beta tokens can quickly collapse and remain paralyzed.
Why the 50 Week Line is Important
Darkfost highlighted the 50-week moving average as a long-horizon filter that market participants use to separate corrective phases from constructive ones. When most tokens stay below it, rallies tend to narrow, selection pressure increases, and the “different season” narrative becomes difficult to sustain without a significant change in liquidity conditions.
He said the current setup was caused by “increased altcoin supply in the broader crypto market combined with lagging liquidity conditions,” a combination that can automatically reduce marginal flows. In that area, he argued, outperformance becomes less about broad beta exposure and more about understanding how the market structure has changed.
At the time of publication, the total value of the crypto market excluding Bitcoin stands at $943.46 billion.
The featured image was created with DALL.E, a chart from TradingView.com
